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Turkish shipowner tied to Samkang aframax orders

Deal for tanker quartet is being linked to interests associated with Geden Lines and is subject to financing and refund guarantees

South Korean shipyard Samkang M&T has secured an order for four aframax tankers from a Turkish-controlled shipowner.

Shipbuilding sources said the shipowner has signed up for a quartet of 113,000-dwt crude oil tankers at the yard for delivery from the second half of 2020.

No price is disclosed but shipbuilding players said that the shipowner is getting a good deal at about $45m per ship. The crude tanker newbuildings will meet the new Tier III emissions standards set out by the IMO.

“These are Tier III type tankers and other Korean shipbuilders are seeking at least $48m per ship for the same ship-type,” one shipbuilding expert said.

Some sources have tied the order to interests associated with Turkey’s former Geden Holdings, but that company sold its fleet to Geneva-based Advantage Tankers.

Advantage is controlled by Gulsun Nazli Karamehmet Williams, the daughter of Geden owner Mehmet Emin Karamehmet. It has denied being an alter ego of the Geden Lines business.

Return to tankers

If interests tied to Geden are truly behind the order, it would mark a return to the shipbuilding market for the Karamehmet family after an absence of eight years.

But one market source rejected the idea that Geden would have placed the order, or that Advantage is in the market for newbuildings.

Listed on the KOSDAQ, Samkang is involved in steel pipe production and manufacturing of ship blocks for domestic shipyards. It entered the shipbuilding business two years ago when it received an order for three 6,600-dwt IMO type 2 chemical tankers from local owner Woolim Shipping for delivery this year.

Samkang will be constructing the aframaxes at its Goseong facility.

Last year, Samkang joined forces with asset manager UAMCO to buy STX Offshore & Shipbuilding’s yard at the port.

The former block-making facility had been put up for sale by Seoul central district for less than KRW 100bn ($87m) as part of STX’s restructuring.

Shipbuilding players said that Geden’s aframax tanker newbuilding deal at Samkang is subject to ship financing and bank refund guarantees.

“The Korean government has pledge to help the shipbuilding industry but we think only shipyards that are in the first tier, such as Hyundai Heavy Industries and DSME, will get support from the state,” one shipbuilding source said.

Another source thinks Samkang may face obstacles in getting banks to issue refund guarantees, but securing that financial backing is still seen as possible.

Asset rich

“It is a new shipyard and it does not have much debt,” the source said. “It can use its assets to get the financing and refund guarantees. On top of that, it will be receiving payments from Woolim for the three chemical tankers that it is delivering soon.”

Geden was reported to have ordered more than 120 vessels at Far Eastern yards worth more than $6bn between 2000 and 2010.

The last newbuilding contract the company placed was reported to be a series of LR1 product carriers at SPP Shipbuilding in 2010.

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Turkish shipowner tied to Samkang aframax orders

Deal for tanker quartet is being linked to interests associated with Geden Lines and is subject to financing and refund guarantees

South Korean shipyard Samkang M&T has secured an order for four aframax tankers from a Turkish-controlled shipowner.

Shipbuilding sources said the shipowner has signed up for a quartet of 113,000-dwt crude oil tankers at the yard for delivery from the second half of 2020.

No price is disclosed but shipbuilding players said that the shipowner is getting a good deal at about $45m per ship. The crude tanker newbuildings will meet the new Tier III emissions standards set out by the IMO.

“These are Tier III type tankers and other Korean shipbuilders are seeking at least $48m per ship for the same ship-type,” one shipbuilding expert said.

Some sources have tied the order to interests associated with Turkey’s former Geden Holdings, but that company sold its fleet to Geneva-based Advantage Tankers.

Advantage is controlled by Gulsun Nazli Karamehmet Williams, the daughter of Geden owner Mehmet Emin Karamehmet. It has denied being an alter ego of the Geden Lines business.

Return to tankers

If interests tied to Geden are truly behind the order, it would mark a return to the shipbuilding market for the Karamehmet family after an absence of eight years.

But one market source rejected the idea that Geden would have placed the order, or that Advantage is in the market for newbuildings.

Listed on the KOSDAQ, Samkang is involved in steel pipe production and manufacturing of ship blocks for domestic shipyards. It entered the shipbuilding business two years ago when it received an order for three 6,600-dwt IMO type 2 chemical tankers from local owner Woolim Shipping for delivery this year.

Samkang will be constructing the aframaxes at its Goseong facility.

Last year, Samkang joined forces with asset manager UAMCO to buy STX Offshore & Shipbuilding’s yard at the port.

The former block-making facility had been put up for sale by Seoul central district for less than KRW 100bn ($87m) as part of STX’s restructuring.

Shipbuilding players said that Geden’s aframax tanker newbuilding deal at Samkang is subject to ship financing and bank refund guarantees.

“The Korean government has pledge to help the shipbuilding industry but we think only shipyards that are in the first tier, such as Hyundai Heavy Industries and DSME, will get support from the state,” one shipbuilding source said.

Another source thinks Samkang may face obstacles in getting banks to issue refund guarantees, but securing that financial backing is still seen as possible.

Asset rich

“It is a new shipyard and it does not have much debt,” the source said. “It can use its assets to get the financing and refund guarantees. On top of that, it will be receiving payments from Woolim for the three chemical tankers that it is delivering soon.”

Geden was reported to have ordered more than 120 vessels at Far Eastern yards worth more than $6bn between 2000 and 2010.

The last newbuilding contract the company placed was reported to be a series of LR1 product carriers at SPP Shipbuilding in 2010.